Friday, 29 January 2016

Today’s
organizations are increasing their focus on financial process automation, and
many are moving to automate sourcing and purchasing activities by implementing Purchase-to-Pay
activities software’s.

We
have observed that P2P software’s bringing numerous benefits to organizations and
assisting material professionals to achieve core methodologies like time reduction in Procurement Cycle,Visibility of Procurement Spend, Increased Cost
Savings,Transparent Business Process and early
payments made via P2P system enhance confidence of suppliers to provide significant
discounts to organization.

Indirect
goods management software providers are a major leader in this space, as they
provide simple process and cost control for requisitioning and purchasing
operations. However, the value of these solutions may be limited in industries
where indirect spend is less than direct procurement spend, as direct
procurement involves a far different set of requirements. On the other hand direct
goods procurement is a much more complex and expansive process than indirect
procurement. It entails multinational suppliers, lengthy lead times, and heavy
reliance on logistics. Direct procurement also requires extensive collaboration
- there are numerous parties and activities in each order’s lifecycle that
procurement officers must track, coordinate, and control.

Increasing
acceptance of information transparency will amplify the degree of scrutiny on procurement
organizations. This disruptive change, coupled with the adoption of real-time
social technologies, will make procurement one of the most visible corporate
functions to the outside world. To that end, procurement leaders need to
encourage their teams to adopt a social mindset and operating model that will
sustain the corporate brand in this more transparent era. By 2025, the best
procurement officers will be as comfortable speaking to consumers, regulators
and the press as they are with suppliers.

Procurement leaders will
mirror the overall transformation for all procurement teams, in which they move
beyond the role of buyers that exclusively specialize in finding, acquiring and
ensuring the timely delivery of goods and services. Companies that begin
adapting to the new procurement landscape today will be poised to seize a
competitive edge in the decade ahead.